Stock Loans

Should you take Cramer's advice and quit the Market?

“Whatever money you may need for the next five years,” Jim Cramer told the legions of Cramericans yesterday, “please take it out of the stock market right now.” 

From Agora Financial's 5 minute forecast:

"Mr. There’s always a bull market somewhere” officially checked out of the current market, suggesting that a the current drama could cause “as much as a 20% decrease in the stock market.”

You don't have to run screaming from the market and take losses today because Cramer said to.  You can take a loan against your portfolio to hedge against losses; non-recourse loans mean that if your stock tanks, you can walk away.

I don't recommend making any decision on the emotions we're experiencing now.  Check out your options, take a deep breath, then sleep on it. 

If you'd like a quote on a particular stock, I can give it to you  via e mail.  I'll need:

• symbol
• value
• state of your residence
• whether or not you are associated with the company

I'll get a quote for you as fast as I possibly can.  Loans tend to close in ten days or less, unless they exceed the ten million mark.

INNOVATIVE FINANCING

In these days where one only hears about the credit crisis and lack of liquidity, people are stymied on where to turn to finance their latest projects. While the reality is there has been a huge change in residential financing (probably for the better - although it doesn't seem that way at the moment, and probably forever!) commercial lending programs have not been affected as much, although lately commercial lenders are finding it harder to sell their paper because of lack of liquidity in the market in general.

As it is harder to get the money to get projects off the ground, we’ve tried to stay ahead of the curve and maintain as many options for our borrowers as possible. While there are still straightforward choices like SBA loans and commercial loans for expansion, purchases and refinances, and Church loans based on tithing, we’ve found there are other forms of financing that aren’t as complicated or time consuming and for the most part also aren’t as costly as traditional financing.

I’ve added stockloans from Hedgelender to my portfolio of products and separately capital advances against credit cards.

The beauty of both programs is they are not based on applications, financial statements, tax returns or credit criteria. And they both fund VERY quickly.

Stock Loans can be used for any number of things, and can be made through a myriad of choices. Here are some highlights:

• Finance your real estate with interest-only repayment while still retaining participation in your stock portfolio;

• Refinance your MARGIN LOAN to remove the possibility of a call;

• Expand Your Business with interest-only repayment while still retaining participation in your stock portfolio;

• Diversity Your Investments while retaining beneficial ownership of your portfolio;

• Roll your Employee Stock Options into cash while continuing to participate in your stock.

Ironically, these loans run to the millions and sometimes tens of millions, and take 1/10th the time to process and fund. And, they are strictly based on the worth of the stock and the amount of shares traded; the ONLY collateral is the stock and . . . credit is NOT a criteria. Neither is purpose, as long as it is legal!

Capital Advances against credit cards is NOT a loan program - but is a purchase of future sales.

Like the stock loan, there is NO long application, financial statement requirement OR tax return requirement; Funds immediately based on credit card sales; factors ALL credit cards receivables - Visa, Mastercard, American Express and Discover.

Clients are using the money for expansion and renovation; Marketing and Advertising; purchase of new locations; Increases to inventory; purchasing much needed equipment Repairs and upgrades; buying out an existing partner; recapture of investment capital; even to pay bills and taxes.

Finer explanations and details are listed on my website PallasFinancier.Com.

Non-Recourse Free Trading and Restricted Stock Loans Benefits

Contemporary stock loan products offer you, as the borrower-investor some unique benefits. While not all stock loans are the same, most of the following are benefits our clients enjoy:

Completely Private Transactions:

The loan is not usually required to be disclosed to the SEC or other shareholders.

Immediate Liquidity

Most stock loan transactions are funded within 72 hours of final approval.

Limited Liability

In most cases, if the stock price falls, the loan is either fully or partially non-recourse. This means no need to repay the difference with no impact to personal credit.

No Personal Guarantees

The stock is used as collateral and nothing else.

No Credit Checks

Unlike consumer loans or bank, broker or margin loans, the stock value, volume and type of security is the primary focus of the loan.

No Margin Calls or Margin Maintenance

Most stock loans do not require margin account maintenance.

Higher Loan to Value – Low Interest Rates

Loan to values range between 30% to as high as 90% depending on the stock. Interest rates are calculated simple as low as 3.99% and are seldom greater than prime +3%.*

Hedge Against Loss

With most stock loans, in the event of a market decline, the client may chose to surrender their stock and simply walk away.

Use Of Funds

Funds may be used for any legally allowable purpose.

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For more information on how a non-recourse stock loan might benefit you . . .

you can call me Traci Gregory 770.333.4404,

• or send me an email -traci@pallasfinancier.com

How Stock Loans Work for You

The stock loan industry has matured and now delivers a wide variety of lending solutions to many of the most common problems associated with accessing stock equity & liquidity. 

Contemporary products instill confidence by offering higher loan to values with limited-recourse alternatives while providing the owner with a hedged down side risk. Stock loans are an ideal way for the investor to be in and out of the market simultaneously, if you will.

In general, stock loans

• allow the borrower to keep the stock in their own name,
• do not require personal credit checks,
• require no additional collateral (other than the stock(s) pledged) and
• are an excellent way for the investor to hedge in the event of a market decline.

You can call me for a quote Traci Gregory, 770-333-4404,

or send me an email - traci@pallasfinancier.com

Stock Loans on Restricted Stocks

Revised 8/25/08

Restricted Stock Loans have become harder to get . . . things are changing in the financial world, and that means products that were here are now gone, or unrecognizable.  I'll do my best to accomodate any loan that you are looking for, but on the restricted stock, you have few options.

What kind of stocks do you own?

These answers determine the stock loans you may qualify for and the offers you'll receive. Free-trading securities (or six-month "seasoned" restricted stocks) with steady prices and strong trading volume for the past four weeks, and a larger ($750K+) stock portfolio with blue chip stocks will give you a full range of choices with as many as ten or more stock loan offers across all HedgeLoan categories.

But, if your stocks are thinly traded or have a relatively small portfolio, you may receive fewer offers.

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Until recently, shareholders of publicly traded companies had only two real options for accessing equity vested in their stock portfolio. Investors could use their stock(s) as collateral to obtain very limited bank or broker loans.

These loans didn’t typically allow for a very high loan to value and usually carried full recourse terms The owner/investor could also turn to their brokerage for very restrictive margin loans which required strong credit worthiness, were limited by size or loan to value, and also carried full recourse provisions and were subject to margin maintenance and Federal house calls.

Owners of restricted stocks are limited in options if they wish to sell or access equity using their interest in their company owned stock.

The stock loan industry has now matured and can deliver a wide variety of lending solutions to many of the most common problems associated with accessing stock equity & liquidity. 

Contemporary products provide borrower(s) with confidence by offering higher loan to values with limited-recourse alternatives while providing the owner with a hedged down side risk. Stock loans are an ideal way for the investor to be in and out of the market simultaneously.

In general, stock loans allow the borrower

• to keep the stock(s) in their own name,
• do not require personal credit checks,
• require no additional collateral (other than the stock(s) pledged) and
• are an excellent way for the investor to hedge in the event of a market decline.

You can call me for a quote - I just need to know the stocks you're considering the loan against - Traci Gregory, 770-333-4404, or send me an email - traci@pallasfinancier.com